Interesting letter from the Brazilian Bankers Association. If you read through it many legal conflicts not just with Brazilian law but Brazil’s Constitution. In many ways a tougher position being taken than by anyone in the Canadian financial industry.
@Roger, I see. So we’re criminal tax evaders because we want to move to other countries, even though the tax rate is higher? That place is nuts! I guess they’ll never understand that we have jobs and family……
@geeez, I know and you know that American citizens who live in another country are, by and large, just as law abiding and loyal Americans, and most are even more so, than some who live and work right here in the USA. But unfortunately very many in high places just do not understand this. Remember as if it were yesterday when I testified before the House Ways and Means Committe on the taxation of US citizens abroad that also testifying before that same committee was Senator William Proxmire, Democratic Senator from Wisconsin, who was one of the sponsors of the Tax Reform Act of 1976 who stated clearly that in his opinion US citizens living abroad served no useful purpose in selling US exports. He described such as “swathed in mink spending thier tax evasion dollars at the gambling tables of Monte Carlo.” Perhaps not his exact words, but as I remember them. And Sentator Grassley (R,IA), formerly Senate Finance Committee Chairman and now Ranking Member of that committee, has expressed similar sentiments with respect to Americans living abroad serving no useful purpose. According to a person who I called in his office to find out how he voted on the 1976 legislation when he was a freshman congressman back then, before he was elected to the Senate, I was informed that he was a co-sponsor of that 1976 legislation.
He introduced the provision of the TIPRA legislation in May 2006 increasing the taxation of US citizens abroad by introducing a provison which, with no discussion or hearings, subjected all income of citizens abroad above the Foreign Earned Income Exclusion to the higher marginal tax rate that would apply as if there were no FEIE. He is also known to favor total repeal of the FEIE.
It is a really tought battle to try to convince members of Congress that Americans who live abroad are just as honest and dedicated to American values as those that live at home. I have been in this battle for 35 years, during which it has gone from bad to worse.
If we didn’t try to have others pay for our welfare programs, we’d pass the FairTax and any American could be free again. They could leave at will and return at will. Our stupid politicians want to exercise power and be re elected and nothing else. We need to clean out abut 90% of the 535 house and senate members and without saying the two goofs in the executive branch.
“Everyone wants to live at the expense of the state. They forget that the state lives at the expense of everyone.”
– Frederic Bastiat